Uber Exits Ride-Hailing, Eyes Delivery Market via Glovo

On September 2, 2023, Uber ceased its ride-hailing operations in Nigeria after 12 years, citing a review of its business and investment priorities in Africa. On the same day, Delivery Hero's board recommended that shareholders accept Uber's offer to acquire the company, which includes Glovo's operations in Nigeria.

Uber's offer is €41.50 per share, equating to an equity value of $14.8 billion, with a deadline for acceptance set for November 5, 2023. The transaction is expected to close in the second half of 2027, pending regulatory approvals.

While Uber is exiting the ride-hailing market, it aims to enter the delivery sector by acquiring an established network through Glovo, which has already built relationships with restaurants, retailers, and couriers in Nigeria. This strategic move allows Uber to leverage Glovo's existing infrastructure rather than starting from scratch.